Apple Computer's iPod remained king of consumer electronics in 2006, according to an annual list of bestselling products released Thursday by online retailer Amazon.com.

For the third straight year, the chic digital music players captured top honors under multiple categorizations, including the bestselling consumer electronics gadget overall throughout the year.

Apple's 30GB fifh-generation video iPod attained dual accolades. It was the most frequently purchased electronics gift in 2006, while the black-colored model was also awarded the title of the "most wished-for gift" -- appearing most often on the Wish Lists of Amazon customers in 2006.

Last year, the 2GB black iPod nano bested all other gadgets in the bestsellers category while the 20GB video iPod was the most requested electronics item by the reseller's customers. The 512MB first-generation iPod shuffle also took honors as the most frequently purchased electronics gift.

As of Thursday evening, Apple's Mac line was also the most prominent PC brand listed on Amazon's list of top selling computers. Macs dominated the upper echelon of the rankings with six out of the top ten spots, including the No. 1 and No. 2 positions overall.

In a report released earlier this week, market share research firm Hitwise suggested that strong holiday sales of iPods caused an incredible surge in traffic to portions of Apple.com. The firm said traffic to the company's iTunes website on Christmas Day was up 413 percent when compared to last Christmas, as surfers wielding new iPods flocked to the web to download iTunes.

The flood of new users was also enough to overwhelm the company's iTunes Store for a period of about 48 hours, according the Associated Press. The media outlet reported Wednesday that a wave of new iPod- and iTunes gift card-bearing customers caused sporadic error messages and long delays for some shoppers who were trying to download songs.

"Some financial analysts said the interruption could be viewed as a sign that sales dramatically exceeded the Cupertino-based company's own forecasts," the AP said.

Yep, looks like Apple sold a Brazillion iPods, gift cards, MacBooks and iMacs. Cool. Earnings should be gangbuster.

So, Apple announces its restatement deal after the bell on Friday and the stock market is closed for 4 days. Plenty of time to digest that thing. MWSF is a week after the stock market opens for the first time in the shiny new year. Earnings a week after that. I'm hoping to see AAPL back into the 90s. 8)

Yep, looks like Apple sold a Brazillion iPods, gift cards, MacBooks and iMacs. Cool. Earnings should be gangbuster.

So, Apple announces its restatement deal after the bell on Friday and the stock market is closed for 4 days. Plenty of time to digest that thing. MWSF is a week after the stock market opens for the first time in the shiny new year. Earnings a week after that. I'm hoping to see AAPL back into the 90s. 8)

As long as Steve doesn't end up in federal prison by then. I keed, I keed!

And lllloooong may it reign. So when do we start the "Get Steve Jobs Out of Jail" fund going... 8)
Hah. You'd all better punch out at $80 and take what you can get. Then re-buy everything at $70 or so after the fiasco, if Steve Jobs aint looking over his shoulder in some California prison shower. Free iPods and MacBooks for all inmates!!!11!!!

Father, forgive me my transgressions with such slander I have made against the iLeader...

Bing Crosby Says: "That's right Peter, and if your kids give you any lip you can beat them with a sack of sweet Velencia Oranges. They won't leave a bruise and it'll let 'em know who's boss, there's nooo doubt about it." [Family Guy, A Picture is Worth a Thousand Bucks]

Well, a lot of the iPods sold during this quarter were unwrapped, opened, and played with all on one specific day. Which is the same day that the store was havings its problems.

Sure. I agree ! My point was just that the 400 % plus increase is just a manipulation quote.
Average traffic in ALL MONTHS in 2006 on the iTunes Store was, at least, 300 % higher than in 2005.
So this peak in Xmas Day is not THAT significant.

Sure. I agree ! My point was just that the 400 % plus increase is just a manipulation quote.
Average traffic in ALL MONTHS in 2006 on the iTunes Store was, at least, 300 % higher than in 2005.
So this peak in Xmas Day is not THAT significant.

Hey, where'd that 300% come from?

And isn't there a whole other 100% that must then be accounted for (i.e. a whole group of new users from the XMas season?)

And don't forget that you're average traffic information doesn't count, as that averages in the highs and lows for the entire year, and not taking anything into account on specific events. (Not to mention the fact that analysts always look at numbers based on a year ago last whatever - day, week, month, quarter) not entire year-long stats.

But, when you look at it, then what you're saying is that Apple's iTMS is in such shambles and sitting on thin ice that the small number of new owners and gift card bearers that tried to connect on xmas brought the whole system to its knees? That's not a good sign.

And it would also imply, then, that since you thought the percentages would be greater that its actually a bad sign for apple (maybe they didn't see a spike of new sales this quarter) and the stock is going to take a bath?

iTunes Store traffic is the DUE to CUMULATIVE SALES of all iPods sold up until now and NOT ONLY THE ONES in this quarter.

Analists are liars and actually I was expecting at least double that traffic, remember the number of ipods sold during 2006 was more than ALL OTHER YEARS. Simple algebra.

The numbers are from this quarter. The reason why they are so high is because Apple no longer includes a disk of software. You now have to go to their site to download it before installing the iPod. It's pretty simple.

Sales are up by 20 to 30% over last year, most likely.

Also sales of gift cards were up .

Analysts have no need to lie about this. They may be mistaken at times, as you are now.

And isn't there a whole other 100% that must then be accounted for (i.e. a whole group of new users from the XMas season?)

And don't forget that you're average traffic information doesn't count, as that averages in the highs and lows for the entire year, and not taking anything into account on specific events. (Not to mention the fact that analysts always look at numbers based on a year ago last whatever - day, week, month, quarter) not entire year-long stats.

But, when you look at it, then what you're saying is that Apple's iTMS is in such shambles and sitting on thin ice that the small number of new owners and gift card bearers that tried to connect on xmas brought the whole system to its knees? That's not a good sign.

And it would also imply, then, that since you thought the percentages would be greater that its actually a bad sign for apple (maybe they didn't see a spike of new sales this quarter) and the stock is going to take a bath?

Man, you really are depressing us around here.....

Sorry, I am not negative on the iTMS and I am also a long AAPL shareholder.
In fact I am very optimistic on AAPL and Apple as a company.

But what I am saying is that the ITMS traffic is a trailing cumulative average regarding iPod sales; What this means is that, as we progress in time the traffic of iTMS downloads is the sum of PAST iPod sales and iusers and not just the current quarter ones.
If the sales in iTMS are always accelerating (as they are) its because past users and new ones are accessing it.Even if the current quarter was bad in terms of iPOD sales the iTMS traffic would still accelerate... A spreadsheet will easily illustrate this.
My point is only that the peak in iTMS in Xmas is NEVER a good indication of current quarter iPOD sales ( but a good on Song Sales)

I called Bullshit on the facr that these analysts never took the trouble to look at the numbers and cry " Wolf !" at any data that surfaces, that's all.

BTW. I predict sales of iPODS, this quarter, will easily fall between 17 and 19 million units.

The numbers are from this quarter. The reason why they are so high is because Apple no longer includes a disk of software. You now have to go to their site to download it before installing the iPod. It's pretty simple.

Sales are up by 20 to 30% over last year, most likely.

Also sales of gift cards were up .

Analysts have no need to lie about this. They may be mistaken at times, as you are now.

I take it the itunes 7.0 downloads are not accounted in the iTMS traffic.
Again, I did not mean that Apple is doing poorly, quite the contrary, I just think that the Xmas day peak is a lousy indicator of anything other than redeeming song offers.

Either way, that's good that it is up.
You an check my claims using a spreadsheet and Apple data on sales of iPods and iTMS songs sold. Sorry if I seemed pretentious.

By my analysis, I figure 22 million this quarter. My increased number over other analysts is due mostly to the lower price point and excellent form factor of the 2nd gen Shuffle.

If sales of iPods hit 22 million I will SO HAPPY I will send you a 4 GB nano as a present.

I am serious and I will do it !

EDIT: Of course this will mean my calculations on Apple sales growth were wrong and Apple shares will climb accordingly (hopefully}.
Either way I will abide by my promisse and you will be the owner of a brand new 4GB Nano, in your choice of color.
Happy New Year !

Sure. I agree ! My point was just that the 400 % plus increase is just a manipulation quote.
Average traffic in ALL MONTHS in 2006 on the iTunes Store was, at least, 300 % higher than in 2005.
So this peak in Xmas Day is not THAT significant.

Isn't the rport talking about the iTunes webiste rather than the iTunes store? (ie where you download the prgram from, rather than the music?)

The report mentions the iTunes Music Store traffic, which technically is a website but only accessible by iTunes.

That's the thing. The 400% increase in traffic bandied about only tracks the software download, and that number means nothing anyway because you have to download v7 if you don't have itunes or are using older software, when previous models included that CD. IIRC, the new iPods won't even work with iTunes 6 so most people would have to upgrade.

There is no Alexa or Webtrends type group that can cover the iTunes Store so it can't be tracked by independent groups in the same way.

That's the thing. The 400% increase in traffic bandied about only tracks the software download, and that number means nothing anyway because you have to download v7 if you don't have itunes or are using older software, when previous models included that CD. IIRC, the new iPods won't even work with iTunes 6 so most people would have to upgrade.

There is no Alexa or Webtrends type group that can cover the iTunes Store so it can't be tracked by independent groups in the same way.

Huh...mmmm... actually you can. There is dedicated hardware that traffic HUBs and providers can rent to third parties and can measure traffic to and from any source. These are used to marketing purposes and, I believe, to enforce security issues, too.

You can sniff traffic pretty much from everywhere to everywhere and interpolate from this even if it is only part of the originating traffic. I am a not a Conspiracy Theorist, but these things exist and are operating as we speak...

Lets say I am a ISP in Portugal (been there , done that ) and I measure all XML tagged traffic to and from the iTMS. I can safely say that this year traffic to ALL of iTMS will behave this or that way, even if just interpolating the Portuguese Store traffic. If you have this data on a major Internet Hub in the States you can pretty much follow the same reasoning.

im glad i hung on to my AAPL shares, they bounced back pretty well today

It was looking a bit scary there for a while. Just a pity that without this fiasco AAPL would be ending 2006 at $95 or something. The overflow of SEC violations/ whatever will be hanging over January 2007 as well, so stock will be around $90 in January, not $100+ until the dust clears and AAPL starts delivering the products promised at MacWorld and consumers start lapping it up like the sweet sweet honey-nectar-milk it is......... 8)

Hah! I'd like to see the analysts that targeted $110 Buy rating come up with stuff to counter the SEC probes/ etc. Not that I don't want AAPL to shoot up as high as possible, but I think the analysts, enjoying their Christmas/ New Year break, coming back in January, won't have much material to drum up support to push $110 in January, they do not want to take on the SEC head on and make statements about the effect of the financial restatements, etc. They seem like they *do not* want to frack with the SEC/ Feds/ etc.

Side notes/ rants:Ignoring the financial details (from a few years ago anyway), there's a lot to push for January 2007. It will be interesting. Also there's the Australian Open tennis in my city(!!) Grand Slam tennis starting middle of January. And I will be applying for a UK working holiday visa for mid-2007 to mid-2009 (2 years) in the 2nd week of January. In my "spiritual studies" (new-age-ish, bordering on Christianity but still pagan/ non-institutionalised, Buddhist elements) I've completed the Text and Lesson 240 of 356 of Course In Miracles*. I started reading Course In Miracles in 2004. Over two years later, wow.... A major book for me. Advice if you want to pick it up, be prepared for a long journey, and most importantly, trust yourself. The text is very tricky in many ways, you need to "interpret it in reverse" in many occasions. Also if you have negative feelings about Christianity you need to try and set it aside because the language used is Christian-based but it is quite different from mainstream Christianity, it's more "Gnostic Early Christianity" with, as I mentioned, actually Buddhist elements. Haven't drunk alcohol or done any recreational/ hard drugs for about 2 years now, 2005-2006, currently medication for "Bipolar Type 2 disorder" is Seroquel, Lamictal, Cipralex/Lexapro (escitalopram) and Rivotril/Rivopam (clonazepam).

It was looking a bit scary there for a while. Just a pity that without this fiasco AAPL would be ending 2006 at $95 or something. The overflow of SEC violations/ whatever will be hanging over January 2007 as well, so stock will be around $90 in January, not $100+ until the dust clears and AAPL starts delivering the products promised at MacWorld and consumers start lapping it up like the sweet sweet honey-nectar-milk it is......... 8)

Hah! I'd like to see the analysts that targeted $110 Buy rating come up with stuff to counter the SEC probes/ etc. Not that I don't want AAPL to shoot up as high as possible, but I think the analysts, enjoying their Christmas/ New Year break, coming back in January, won't have much material to drum up support to push $110 in January, they do not want to take on the SEC head on and make statements about the effect of the financial restatements, etc. They seem like they *do not* want to frack with the SEC/ Feds/ etc.

I completely agree with this view.

I should also add that, IMHO, Apple, in the last 3 years, as elevated itself to a spearhead stock in the market with all its pros and cons. High visibility make it a easy target to MAJOR manipulation and volatility especially at these levels, which some call high, but in reality is just the base point for future growth Apple will surely enjoy.
I have been long on Apple since 1998, and since then, despite all the hiccups , Apple as delivered a vision and a incremental fine tuning in operations that really put it way ahead of its peers. Deeper than that, Apple has carved a new paradigm for the industry, that no doubt will me imitated all around the world, and we will see, of all the copycats, who can really deliver like Apple does today. Technology is becoming a very, very cheap asset and the only winners will be the ones that deliver it with such deep cultural knowledge and sensible feel. Apple has done in our countries with high success with the iPod and hopefully will prove the iPod was not a fortunate accident but the first product in this rationality.

It was looking a bit scary there for a while. Just a pity that without this fiasco AAPL would be ending 2006 at $95 or something. The overflow of SEC violations/ whatever will be hanging over January 2007 as well, so stock will be around $90 in January, not $100+ until the dust clears and AAPL starts delivering the products promised at MacWorld and consumers start lapping it up like the sweet sweet honey-nectar-milk it is......... 8)

Hah! I'd like to see the analysts that targeted $110 Buy rating come up with stuff to counter the SEC probes/ etc. Not that I don't want AAPL to shoot up as high as possible, but I think the analysts, enjoying their Christmas/ New Year break, coming back in January, won't have much material to drum up support to push $110 in January, they do not want to take on the SEC head on and make statements about the effect of the financial restatements, etc. They seem like they *do not* want to frack with the SEC/ Feds/ etc.

Side notes/ rants:Ignoring the financial details (from a few years ago anyway), there's a lot to push for January 2007. It will be interesting. Also there's the Australian Open tennis in my city(!!) Grand Slam tennis starting middle of January. And I will be applying for a UK working holiday visa for mid-2007 to mid-2009 (2 years) in the 2nd week of January. In my "spiritual studies" (new-age-ish, bordering on Christianity but still pagan/ non-institutionalised, Buddhist elements) I've completed the Text and Lesson 240 of 356 of Course In Miracles*. I started reading Course In Miracles in 2004. Over two years later, wow.... A major book for me. Advice if you want to pick it up, be prepared for a long journey, and most importantly, trust yourself. The text is very tricky in many ways, you need to "interpret it in reverse" in many occasions. Also if you have negative feelings about Christianity you need to try and set it aside because the language used is Christian-based but it is quite different from mainstream Christianity, it's more "Gnostic Early Christianity" with, as I mentioned, actually Buddhist elements. Haven't drunk alcohol or done any recreational/ hard drugs for about 2 years now, 2005-2006, currently medication for "Bipolar Type 2 disorder" is Seroquel, Lamictal, Cipralex/Lexapro (escitalopram) and Rivotril/Rivopam (clonazepam).

It was looking a bit scary there for a while. Just a pity that without this fiasco AAPL would be ending 2006 at $95 or something. The overflow of SEC violations/ whatever will be hanging over January 2007 as well, so stock will be around $90 in January, not $100+ until the dust clears and AAPL starts delivering the products promised at MacWorld and consumers start lapping it up like the sweet sweet honey-nectar-milk it is......... 8)

Hah! I'd like to see the analysts that targeted $110 Buy rating come up with stuff to counter the SEC probes/ etc. Not that I don't want AAPL to shoot up as high as possible, but I think the analysts, enjoying their Christmas/ New Year break, coming back in January, won't have much material to drum up support to push $110 in January, they do not want to take on the SEC head on and make statements about the effect of the financial restatements, etc. They seem like they *do not* want to frack with the SEC/ Feds/ etc.

Keep in mind that those price targets are set for 1 year out. I am very patient with the stock and it has rewarded me immensely. Maybe it will take a year to hit $110, and I will still be happy. I always find it funny when an analyst sets a 1 year price target on a momentum stock and the market rushes to hit that target within a few weeks.

That said, I think it is definitely possible for it to be in the $100's or even hit $110 in January depending on MacWorld and earnings.

Keep in mind that those price targets are set for 1 year out. I am very patient with the stock and it has rewarded me immensely. Maybe it will take a year to hit $110, and I will still be happy. I always find it funny when an analyst sets a 1 year price target on a momentum stock and the market rushes to hit that target within a few weeks.

That said, I think it is definitely possible for it to be in the $100's or even hit $110 in January depending on MacWorld and earnings.

If sales of iPods hit 22 million I will SO HAPPY I will send you a 4 GB nano as a present.

I am serious and I will do it !

EDIT: Of course this will mean my calculations on Apple sales growth were wrong and Apple shares will climb accordingly (hopefully}.
Either way I will abide by my promisse and you will be the owner of a brand new 4GB Nano, in your choice of color.
Happy New Year !

I just re-watched MWSF 2006. JObs stated that iPOds were being sold at a rate of 100 per minute for the entire quarter, which led to the 14M sold. To sell 22M Apple has to sell 166/minute. Here hoping.

Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"

I just re-watched MWSF 2006. JObs stated that iPOds were being sold at a rate of 100 per minute for the entire quarter, which led to the 14M sold. To sell 22M Apple has to sell 166/minute. Here hoping.

I still believe that 22 M is a VERY optimistic number.
I will be glad to be wrong.

I would like the productRed Nano to do well, though, I think it's the best of the productRed products.

In the phone call today they said that they had stock on everything, unlike last year.

Then they didn't ship enough at a time, so they still didn't keep up with demand. I was at every major store (Best Buy, Walmart, Circuit City, Apple Store) many times over the holidays and only the Apple Store had any Shuffles in stock. And even they we were low one time as I recall a clerk saying, "we were out yesterday, but we just got some more in this morning", when I asked about them.

Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"